New FL state resident

[bf253]

My wife and I just became permanent FL residents to save on the outrageous CT income taxes.

We still have residence in both states but are spending 6 months + 1 day in FL.

What steps do we need to take in this process?

[PaulD CPA]

HI bf253, congratulations on your relocation to Florida.  For 2022 taxes, you'll need to file a Connecticut tax return with Part-Year residency status.  Your income, deductions and credits for the period of time from January 1, 2022 up to the date you became non-residents of Connecticut will be reported on this tax return (TurboTax will ask questions to help you report the correct amounts). For the remainder of the year, only income that is derived from a Connecticut source would be taxable by Connecticut.  For example, if you owned a business or rental property located in the state.  This would not include wages paid by a Connecticut-based employer for work performed in Florida.  Consider filing a Florida Declaration of Domicile with the Clerk of Court for the Florida county you now reside in.  If you own a home in Florida, be sure to register for the Florida Homestead Property Tax Exemption with the county Property Appraiser.  Here's more about that: PROPERTY TAX EXEMPTION FOR HOMESTEAD PROPERTY 

A colleague recommends reading this: So You Think You are a Florida Resident 

Does this fully address your question?

[bf253]

Thanks Paul that helps.

So T. Tax will know what CT Part-Year form to use for my 2022 return?

Next question: We are both retired. Do I need to notify our pension company to stop taking CT tax out of our pension distribution?

Also, since S. Security does not take out any state income tax, do I still need to notify them of my new residence?

[PaulD CPA]

Yes, TurboTax will automatically use Form CT 1040NR/PY and will include the other necessary forms (Worksheet CT-1040AW and Schedule CT-SI).  Yes, you can request that you CT tax withholding from pension distributions be stopped.  If you don't, the excess withholding should be refunded by CT after filing your 2022 Part-Year Resident tax return. You should to stop that withholding before the end of this year to prevent the need to file a 2023 CT return to get that withholding refunded.  As for Social Security and all other financial-related accounts, it would be best to notify them of your new Florida address which could help support your position that you're a Florida resident if Connecticut were to challenge your residency status.